In a Nutshell
Being an authorized user on a credit card could affect your credit positively if the account holder makes on-time payments and keeps the credit utilization rate low. If they don’t, your credit could take a hit.This offer is no longer available on our site: Citi Custom Cash® Card
Becoming an authorized user on someone else’s credit card can be a simple and effective tactic if you’re still working to establish your credit.
While it’s certainly not a substitute for building up your own credit history, it may be a good way to give your credit a nice boost as you’re getting started.
The flip side? Your credit history and credit scores can be hurt if the primary account holder doesn’t stay on top of their payments. If you’re an authorized user, late payments can affect your credit along with the account holder’s.
Before taking the plunge, here’s what you need to know about becoming an authorized user on a credit card.
- What is an authorized user on a credit card?
- Pros and cons of being an authorized user
- How to add and remove authorized credit card users
- How does being an authorized user affect your credit?
- What is the first step in building credit?
- Authorized credit card user FAQs
What is an authorized user on a credit card?
Being an authorized user means you can use someone else’s credit card in your name. You can make purchases and use the card as if it were your own, but you’re not the primary account holder.
To make you an authorized user, the primary account holder simply adds your name to their credit card account, giving you authorization to use it. You’ll receive a credit card tied to the account, though you won’t have all the privileges of the primary account holder. For example, you probably won’t be able to make changes to the account, like requesting a credit increase or adding more authorized users. If you want to build up your credit, becoming an authorized user may help.
Who can be an authorized user?
Some issuers may have specific requirements — for example, an issuer may require that any authorized users are at least 13 years old or have a valid Social Security number. But anyone who meets an issuer’s requirements can be an authorized user on a credit card. Authorized users are often related to the primary cardholder in some way. Before adding an authorized user, it may be a good idea to discuss healthy credit habits so they can start strong building their credit.
What responsibilities does an authorized user have?
As an authorized user, you’re not legally responsible to pay the credit card bill or any debts that build up. This is still the primary account holder’s responsibility.
Pros and cons of being an authorized user
Pros of being an authorized user
Pros
- Can build credit without being responsible for payments
- Relatively easy process
- Access to credit without formally applying for a card
Cons of being an authorized user
Cons
- Credit risk if primary cardholder pays late
- No control over account
- Not all cards allow authorized users
How to add and remove authorized credit card users
Each issuer may have a different process to add an authorized user, but typically
contacting your issuer is the best first step. Your issuer will likely ask for information on the authorized user like their name, birthday, and Social Security
number. While adding an authorized user doesn’t usually cost anything, it can
come with an additional annual fee if your card has one.
Removing an authorized user typically involves calling your issuer and making the
request. Depending on your issuer, you may even be able to request the removal
through your online account.
How does being an authorized user affect your credit?
The accounts that you’re an authorized user on will likely appear on your credit reports. Most, but not all, credit card issuers report account activity to an authorized user’s credit reports. Before you’re added as an authorized user, you may want the primary account holder to ask their credit card issuer whether it reports authorized user accounts to the three major credit bureaus.
If the card issuer reports to the bureaus, then the account will typically show up on your credit reports within 30 to 45 days. But keep in mind that not all issuers report to all three bureaus — and if they do, the timing of when issuers report to credit bureaus can vary.
If the account does show up on your credit reports, the primary account holder’s actions could affect your credit for better or for worse. If the primary account holder has a strong history of on-time payments, this can have a positive impact on your credit. On the other hand, if the primary account holder misses a payment on the card, your credit can go down — just one late payment can have a severe negative impact. The same goes for high credit utilization on the account.
What is the first step in building credit?
Finding out if you have credit reports is a great first step in building credit. You might not have reports currently, or there may not be enough history in your reports yet to generate a credit score. You can check your Equifax and TransUnion reports for free any time on Credit Karma, or by going to annualcreditreport.com for weekly, free access to your reports from all three of the main credit bureaus, including Experian. Then, work on building positive payment history. Getting a secured credit card, having your utility, rent, or cellphone payments reported to the bureaus, or using a tool like Credit Karma’s Credit Builder are some potential ways to build credit.
Next steps
Think carefully before you decide to become an authorized user on a credit card. Adding yourself to an account that’s in good standing can get you one step closer to better credit scores and as a result, access to products and rates that you may not have otherwise qualified for. But remember, your credit could also be negatively affected if you’re added to an account, then payments are late or missed.
Authorized credit card user FAQs
Make sure you select someone you can trust who practices healthy credit habits — most importantly, someone who pays their bills on time and keeps their credit utilization low.
Think carefully before you make your decision — putting yourself on the wrong person’s account could have a detrimental effect on your scores if they don’t have healthy credit habits.
An important point to note is that the primary account holder’s credit scores will not be affected by adding you as an authorized user, even if your credit history is limited or needs work.
As a joint account holder, you’re legally responsible to pay off any debts that accumulate. The process of being added to an account is also stricter — lenders will expect you to meet their requirements, like you’re applying for a credit card on your own. Authorized users usually won’t run into this problem, as there’s generally no credit check involved.
Joint accounts are more commonly used by spouses who share their finances with each other and don’t mind each person having the same credit limit.
Not all credit cards or issuers allow joint card accounts.
If the primary account holder makes a late payment, your credit scores will be impacted. While authorized users aren’t responsible for making payments, the payment history is reported to the credit bureaus. If the payment is late on the account, it will be reported on the authorized user’s credit reports — in addition to the primary account holder’s reports. Payment history is one of the most important factors in your credit scores, so any late payments can cause your scores to decrease.
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